Glossary
The DCA, or Dollar-Cost Averaging, is an investment strategy that involves investing a fixed amount at regular intervals, regardless of market fluctuations. In crypto, this means, for example, buying the same amount in Bitcoin, Ethereum, or any other cryptocurrency every week or every month.
The goal of DCA is to smooth out the purchase price over time, avoiding investing all one’s capital at a potentially unfavorable moment (like a market peak). This method helps reduce the impact of volatility, which is particularly strong in the crypto universe.
Advantages of DCA:
Reduces the risk associated with market timing
Disciplines the investor by removing emotion from decisions
Suitable for both beginners and long-term profiles
DCA is often recommended for those who believe in the long-term potential of cryptocurrencies while wishing to avoid taking too drastic risks.